The United Arab Emirates has solidified its position as the epicenter of Middle Eastern and North African merger and acquisition activity, catalyzing a remarkable 26% surge in regional transactions during 2025. According to EY’s comprehensive Mena M&A Insights report, the region witnessed 884 deals valued at $106.1 billion, marking a substantial increase from the previous year’s 701 transactions.
The UAE’s dominance was particularly striking, accounting for nearly half of all inbound investment volume and an extraordinary 92% of total inbound value. The nation led domestic dealmaking with 131 local transactions—more than any other Mena country—while simultaneously attracting the region’s most substantial acquisitions. This dual strength demonstrates the Emirates’ unique position as both an originator and destination for strategic investments.
Cross-border transactions continued to shape the Mena landscape, representing 54% of deal count and 61% of total value. Sovereign wealth funds including Abu Dhabi Investment Authority, Mubadala, and Saudi Arabia’s Public Investment Fund emerged as pivotal players, deploying substantial capital for acquisitions within and beyond the region.
The year’s landmark transactions underscored the UAE’s sectoral diversity. The monumental $16.5 billion acquisition of a 64% stake in petrochemicals company Borouge by Austrian energy group OMV and subsidiary Borelis ranked as the largest deal. This was followed by L’IMAD Holding Company’s $13.8 billion purchase of an 84.76% stake in Modon Holding, and Multiply Group’s $7.7 billion acquisition of 42.2% of 2PointZero.
Inbound investment surged dramatically, with volume increasing 37% to 223 deals and value more than doubling to $25.4 billion. Austria emerged as the standout international investor, responsible for 65% of inbound value through just three chemical-sector transactions. Outbound activity similarly strengthened, climbing 29% to 256 deals worth $39.2 billion, with government-related entities from the UAE and Saudi Arabia accounting for 64% of this value.
Technology and diversified industrial products served as the region’s primary growth engines, contributing 38% of overall deal volume. Real estate—including hospitality and leisure—and asset management represented more than half of disclosed domestic deal value, signaling robust investor appetite for long-term assets.
Despite global political uncertainties and transformative technological shifts, the Mena M&A market demonstrated remarkable resilience. The UAE’s stable regulatory environment, expanding trade volumes, and economic diversification have positioned it as the region’s preeminent investment destination, cementing its status as an emerging global FDI powerhouse.